Restructuring Opportunities Under Regulations For Businesses In Crisis

A look at how the Spanish Insolvency Act 2004 creates possibilities for rescue within insolvency proceedings.

Completing Out Of Court Restructuring In Spain: The Challenges

In Spain there is no system to effect the restructuring of troubled but still solvent companies. Unlike other European neighbouring countries, there is neither a "provisional" procedure (such as Germany's Vorläufiger Insolvenzverfahren) nor an informal code of practice, such as the old "London Approach". As general private and commercial law are fully applicable in the period before insolvency, there should be plenty of room for the interested parties to reach an agreed solution. However, real life offers a wholly different picture: restructuring out of Court rarely happens. The behaviour of the Spanish banks is the most likely reason for this.